StockFetcher Forums · General Discussion · TRADING THEORY<< >>Post Follow-up
holygrail
72 posts
msg #27213
Ignore holygrail
7/5/2003 9:09:53 PM

For the record, this is NOT Holygrail... this is his trading buddy.

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TRADING THEORY - as of June 2, 2003

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As I see it, there are two parts to making money in the stock market

1) Stock selection

2) Trading tactics

I believe trading tactics are more important... it is NOT what stock you trade, but how you trade it.

However, selecting stocks that have a higher probabilty of going up than down definitely will give you an edge.

By selecting stocks that have bottomed on the RSI(2) on the daily chart, then have had OPEN = CLOSE (or close to it), and finally had the RSI(2) cross above the RSI(3), you get that edge.

Daytrading vs. Swing Trading

Some people can't sit in front of the monitor and trade stocks all day. Some don't want to. But a few of us stock nuts do.

For those who can't or don't, our swing trading tactics allow you to profit on a daily and/or short term basis.

If you can't sleep if you own stocks, worried that the sky will fall before you can sell, then you simple buy the stocks at the open and sell them at the close. For those who want to ride the stocks up as long as it last, you buy the stocks at the open and set a stop loss at 70% - 85% of the price you paid. That's a potential 30% loss you might say! However, since our list has selected stocks that have bottomed out, we reduce the probality that a 30% loss will occur. At the end of the day, you modify your stop to 85% - 95% of the high of the day remembering that you never move a stop down only up. So, if day three's high is lower than day two's high, you leave the stop alone.

By buying equal dollar amounts of the entire list, you give yourself another edge, you will reap the benefits of each stock that pops that day. It seems like one, two or more stocks have 10% or better gains the first day they appear on the list. Just think about it. If there were five stocks on the list and 4 of them broke even but one went up 20%, you will easily make your 2% daily goal.

For the record, this is NOT Holygrail... this is his trading buddy.



xplorer
257 posts
msg #27219
Ignore xplorer
7/5/2003 10:48:32 PM


You said it all in "... it is NOT what stock you trade, but how you trade it." ... so true !

BRAVO !!!



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